Amex GBT Merger Faces DOJ Hurdle Despite UK Green Light
Deal News | Apr 03, 2025 | EIN
The UK's Competition and Markets Authority has approved the merger between American Express Global Business Travel (Amex GBT) and Carlson Wagonlit Travel (CWT), valued at $540 million—though this is $30 million less than previously anticipated. However, Amex GBT has delayed the finalization of the merger until the end of the year due to pushback from the United States Department of Justice (DOJ). The DOJ's Antitrust Division argues that the merger could impede competition in the travel management sector. Amex GBT rebuts the DOJ's concerns, claiming that the merger would enhance service offerings for customers, suppliers, and employees. The company has previously acquired nine firms, and aims to acquire CWT as its tenth. Amex GBT is a dominant entity in the global business travel sector, managing $28 billion in transactions in 2023. CWT is the third-largest in the sector, with expected management of $14 billion in transactions for 2024. The role of regulatory bodies such as the UK's CMA and the US DOJ highlights the intricacies involved in international mergers, particularly given their differing legal and economic frameworks.
Sectors
- Travel Management
- Regulatory and Legal
Geography
- United Kingdom – The UK's Competition and Markets Authority has approved the merger.
- United States – The DOJ has raised antitrust concerns, delaying the merger.
Industry
- Travel Management – Relevant due to the focus on Amex GBT and CWT, both major providers in the business travel management sector.
- Regulatory and Legal – The article extensively discusses the role of regulatory bodies like the CMA and DOJ in the merger process.
Financials
- $540 million – The value of the proposed merger between Amex GBT and CWT.
- $28 billion – Amex GBT's managed business travel transactions in 2023.
- $2 billion – Amex GBT's revenue generation.
- $14 billion – Expected business travel transactions managed by CWT in 2024.
- $850 million – Projected revenues for CWT.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| American Express Global Business Travel (Amex GBT) | Bidding Company | Company | The largest provider of business travel management services aiming to acquire CWT. |
| Carlson Wagonlit Travel (CWT) | Target company | Company | The third-largest global provider of business travel management services. |
| Competition and Markets Authority (CMA) | Regulatory Authority | Government | Approved the merger between Amex GBT and CWT in the UK. |
| Department of Justice (DOJ) | Regulatory Authority | Government | Filed a lawsuit to block the merger due to antitrust concerns. |
| Eric J. Bock | Chief Legal Officer | Person | Represents Amex GBT, arguing against DOJ's claims. |